diff --git a/WHATS_NEW_DM b/WHATS_NEW_DM
index 7726d0347..b4be42bac 100644
--- a/WHATS_NEW_DM
+++ b/WHATS_NEW_DM
@@ -1,5 +1,6 @@
 Version 1.02.06 - 
 =============================
+  Fix leaks in error paths found by coverity.
   Increase dmsetup line buffer to 4k.
 
 Version 1.02.05 - 19 Apr 2006
diff --git a/libdm/libdm-common.c b/libdm/libdm-common.c
index 0b2e3c24a..71b11ff6d 100644
--- a/libdm/libdm-common.c
+++ b/libdm/libdm-common.c
@@ -101,8 +101,10 @@ struct dm_task *dm_task_create(int type)
 		return NULL;
 	}
 
-	if (!dm_check_version())
+	if (!dm_check_version()) {
+		dm_free(dmt);
 		return NULL;
+	}
 
 	memset(dmt, 0, sizeof(*dmt));
 
diff --git a/libdm/libdm-file.c b/libdm/libdm-file.c
index dbbca5999..54c38b4e8 100644
--- a/libdm/libdm-file.c
+++ b/libdm/libdm-file.c
@@ -23,7 +23,7 @@
 static int _create_dir_recursive(const char *dir)
 {
 	char *orig, *s;
-	int rc;
+	int rc, r = 0;
 
 	log_verbose("Creating directory \"%s\"", dir);
 	/* Create parent directories */
@@ -35,22 +35,24 @@ static int _create_dir_recursive(const char *dir)
 			if (rc < 0 && errno != EEXIST) {
 				log_error("%s: mkdir failed: %s", orig,
 					  strerror(errno));
-				dm_free(orig);
-				return 0;
+				goto out;
 			}
 		}
 		*s++ = '/';
 	}
-	dm_free(orig);
 
 	/* Create final directory */
 	rc = mkdir(dir, 0777);
 	if (rc < 0 && errno != EEXIST) {
 		log_error("%s: mkdir failed: %s", orig,
 			  strerror(errno));
-		return 0;
+		goto out;
 	}
-	return 1;
+
+	r = 1;
+out:
+	dm_free(orig);
+	return r;
 }
 
 int create_dir(const char *dir)